HomeMy WebLinkAboutResolution No. 2024-37 | Tefra HearingRESOLUTION NO. 2024-37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY
APPROVING THE TECHNICAL REISSUANCE BY THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY OF MULTIFAMILY HOUSING REVENUE BONDS IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $40,000,000 FOR THE
PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION AND
CONSTRUCTION OF AFFORDALBE HOUSING PROJECT AT 1520 HECKER PASS
HIGHWAY AND CERTAIN OTHER MATTERS RELATING THERETO
WHEREAS, Village at Santa Teresa, LP, a California limited partnership (the
“Borrower”) a partnership of which JEMCOR Development Partners, LLC (the “Developer”)
or a related person to the Developer is the general partner, has requested that the California
Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the
issuance of exempt facility bonds for a qualified residential rental project pursuant to
Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series
issued from time to time, including bonds issued to refund such exempt facility bonds in
one or more series from time to time, and at no time to exceed $40,000,000 in aggregate
principal amount (the “Bonds”), to finance or refinance the acquisition, construction,
improvement and equipping of a multifamily rental housing project located at 1520 Hecker
Pass Highway, Gilroy, California (the “Project”); and;
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by
the Authority must be approved by the City of Gilroy (the “City”) because the Project is to
be located within the territorial limits of the City; and
WHEREAS, the City Council of the City of Gilroy (the “City Council”) is the elected
legislative body of the City and is one of the “applicable elected representatives” required
to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the Authority has requested that the City Council approve the
issuance of the Bonds by the Authority in order to satisfy the public approval requirement
of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of
Powers Agreement Relating to the California Municipal Finance Authority, dated as of
January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following
notice duly given, held a public hearing on August 16, 2021, regarding the issuance of
the Bonds, did approve the issuance of the Bonds by the Authority; and
WHEREAS, pursuant to Section 147(f) of the Code, the California Municipal
Finance Authority has, following notice duly given, held a public hearing on July 31, 2024,
regarding the technical reissuance of the Bonds because of a delay in the completion of
the Project caused by PG&E’s delay in completing the electricity connections, and now
requests City Council approval of the technical reissuance of the Bonds by the Authority.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Gilroy
as follows:
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Resolution No. 2024-37
TEFRA Resolution
City Council Regular Meeting | August 5, 2024
Page 2 of 3
Section 1. The foregoing resolutions are true and correct.
Section 2. The City Council hereby approves the technical reissuance of the
Bonds by the Authority. It is the purpose and intent of the City Council that this resolution
constitute approval of the issuance of the Bonds by the Authority, for the purposes of
(a) Section 147(f) of the Code by the applicable elected representative of the
governmental unit having jurisdiction over the area in which the Project is to be located,
in accordance with said Section 147(f) and (b) Section 4 of the Agreement.
Section 3. The issuance of the Bonds shall be subject to the approval of the
Authority of all financing documents relating thereto to which the Authority is a party. The
City shall have no responsibility or liability whatsoever with respect to the Bonds.
Section 4. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing to acquire or construct the Project or any
refinancing of the Project; (ii) approve any application or request for or take any other
action in connection with any planning approval, permit or other action necessary for the
acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make
any contribution or advance any funds whatsoever to the Authority; or (iv) take any further
action with respect to the Authority or its membership therein.
Section 5. The officers of the City are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents which
they deem necessary or advisable in order to carry out, give effect to, and comply with
the terms and intent of this resolution and the financing transaction re-approved hereby.
Section 6. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED this 5th day of August 2024 by the following roll call vote:
AYES:
NOES:
COUNCIL MEMBERS: BRACCO, ARMENDARIZ, MARQUES,
HILTON, CLINE, TOVAR, BLANKLEY
COUNCIL MEMBERS:
ABSTAIN:
COUNCIL MEMBERS:ABSENT:
COUNCIL MEMBERS:APPROVED:
Marie Blankley, Mayor
ATTEST:
_______________________
Beth Minor, Interim City Clerk
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Resolution No. 2024-37
TEFRA Resolution
City Council Regular Meeting | August 5, 2024
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CERTIFICATE OF THE CLERK
I, BETH MINOR, Interim City Clerk of the City of Gilroy, do hereby certify that the
attached Resolution No. 2024-37 is an original resolution, or true and correct copy of
a City Resolution, duly adopted by the Council of the City of Gilroy at a Regular
Meeting of said held on Council held Monday, August 5, 2024, with a quorum
present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
Official Seal of the City of Gilroy this Tuesday, August 6, 2024.
____________________________________
Beth Minor
Interim City Clerk of the City of Gilroy
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